WBR

[David Randolph]

Wyndham International, Inc.. The Group's principal activity is to offer upper scale and luxury hotel and resort accommodations.

WBR is a recent stock on the market, its debut date was just in October 2002:



On the last few days the stock erupted trough a downtrending channel and is making headwind since then:



With this kind of chart pattern and volume breakout we're expecting at least 30% from this baby in the next few days ... just look at the white candles forming and the volume backing them.

But when we expect big profits we know we must be prepared for the risk implied. So there must be an objective trading plan, considering both cases, success and failure.

Trading Plan:

1) Buy at open
2) Don't want to see a close below $0.91 on the short term. If that happens, run like hell.
3) This stock can make a huge move above this consolidation phase, it can even make a new all time high above $1.54. So we have to keep monitoring the stock to know when to sell with a profit.

David Randolph
www.3stocksonfire.org

[Ramsburg]

Hi David,

Congrats on Today's Picks

WBR was on my watch list but you were here first !

regards,

[sunsurz1]

Hi...I own a few thousand shares of WBR...avg. cost about .80...will follow this site to see if I should continue to hold or sell...maybe a buyout will happen and I won't have to make any decision...Jim

[Ramsburg]

Hi...I own a few thousand shares of WBR...avg. cost about .80...will follow this site to see if I should continue to hold or sell...maybe a buyout will happen and I won't have to make any decision...Jim

Hi SunSur1 !

.80 looks to me like a very nice price to be in ;-)
You probably entered the stock on the first big candle ? right ?

best regards,

[David Randolph]

... volume was getting weaker and today the stock started to slide. I dumped the stock, I'll find a better use for my money.

[saffeysite1]

I am holding on this.  I think it will move by Friday.

[David Randolph]

Thanks.

[saffeysite1]

I have noticed a pattern with this one since last Wednesday.  In the last hour you have a surge of Volume and large Bid size's coming in.

It has now formed a triple bottom. 

I think somethings up, but that's just my humble opinion.  I could be dead wrong, but for .90/share I'll let it fly.

[saffeysite1]

It's a feeding frenzy today, after the news.

[napo1009]

NASDAQ as usuall is down but WBR is 2% UP and in a huge volume - also, earning report was released a couple of days ago which was very good. My opinion is that we will see WBR going UP to 1.5/8 in the coming days. Btw - Bought them yesterday in 1.0 .

[David Randolph]

... and the chart seems to go with your opinion. Maybe I sold too early, since I sold at $0.96 and WBR now is at $1. The chart suggests WBR is consolidating:



An ascending triangle normally breaks to the upside. Good luck for you saffeysite1 and napo1009 !

[setravis]

WBR has been bought out by its preferred shareholders. We common shareholders got squeezed out. Management and the board voted with the preferred shareholders. They didn't hold large stakes in the common anyway (which I should have recognized as a warning signal), and they still have their jobs. The common was bought out at $1.15, just as the hotel industry ($DJUSLG) hit a multi-year high. Then the '05 hurricanes hit. Wyndham has lots of southeast U.S. exposure, but since the company no longer publicly trades, we former owners have no way to assess the impact on what we thought was our company, our hotels. So it goes. The lesson? If it looks too good to be true, in this case owning a share of one of America's premier hotel brands for 25¢ on the dollar, it's probably false. The falsehood turned out to be the conversion rate for the convertible preferred. The deal cooked by management and the preferred shareholders lowered the conversion rate to the point that the preferred shareholders got 85% of new common. And guess what? They were allowed to vote on the deal at that rate. If memory serves, at the original conversion rate, their stake (with accrued interest) would have been about two-thirds of the common. Still more than enough to win the vote and take over our company, but we former common shareholders would have been entitled (on the independent valuation), to receive more than double what we got for our shares — enough for me to have seen a profit in my family's original investment in college accounts for children and grandchildren and in retirement accounts for the adults, including one great grandparent. My rough estimate is that we common shareholders were forced out of the game and had to leave $200M on the table. R.I.P.